Bitcoin (BTC) failed to take back $16,800 yesterday and lost traction at $16,700 last night. The BTC price then briefly dipped to $16,400 and even made one on some exchanges wick to $16,250.
Bitcoin then bounced back and bounced back to $16,800 this morning. The BTC price stands at $16,778 on Binance and $15,795 on Bitvavo at the time of writing.
This means that the bitcoin price is up 0.3% today. Trading volume increased by 70% in the last 24 hours. The total market capitalization is $323 billion and the dominance is 39.9%. The Fear & Greed Index comes out at 29 (Fear).
Bitcoin Fear and Greed Index is 29 – Fear
Current price: $16,610 pic.twitter.com/8RSesYUFac— Bitcoin Fear and Greed Index (@BitcoinFear) December 19, 2022
Market sentiment is getting worse
Last week, a lake caused hawkish then the Federal Reserve, the US central bank, expected a lot of fear and volatility in the markets. As a result, general sentiment is again very low and many analysts fear new ones lows.
Meanwhile, stories are coming out from China that the corona virus is striking again now that many lockdown measures have been completely released. This, too, is creating a new dose of fear in the financial markets.
⚠️THERMONUCLEAR BAD—Hospitals completely overwhelmed in China ever since restrictions dropped. Epidemiologist estimate >60% of 🇨🇳 & 10% of Earth’s population likely infected over next 90 days. Deaths likely in the millions—plural. This is just the start—🧵pic.twitter.com/VAEvF0ALg9
— Eric Feigl-Ding (@DrEricDing) December 19, 2022
Bank of Japan makes unexpected big announcement
However, the volatility we are seeing this morning has to do with a decision by the Bank of Japan (BoJ), Japan’s central bank. The BoJ unexpectedly raised the limit on 10-year Japanese government bond yields from 0.25% to 0.5% this morning.
BOJ is clearly Giving up on Yield Curve Control in 2023
*JAPAN 10-YEAR BOND YIELD SOARS 20.5BPS TO 0.455%, HIGHEST SINCE 2015
— Lawrence McDonald (@Convertbond) December 20, 2022
It is causing Asian markets to turn quite red this morning and the Japanese yen plummets against the US dollar. So Bitcoin is currently holding up a bit stronger.
⚠️BREAKING:
*ASIAN-PACIFIC STOCKS SINK ACROSS THE REGION AS BOJ POLICY SHIFT RATTLES SENTIMENT
🇯🇵🇦🇺🇨🇳🇭🇰🇰🇷 pic.twitter.com/AgyZUkSJN1
— Investing.com (@Investingcom) December 20, 2022
QuadrigaCX bitcoin suddenly on the move
Researcher ZachXBT reports that suddenly 104 BTC associated with the infamous QuadrigaCX exchange is moving. This Canadian crypto exchange went under in early 2019 when its founder died under mysterious circumstances. There is even a Netflix movie about it now.
Five wallets attributed to QuadrigaCX unexpectedly moved ~104 BTC on Dec 17 for the first time in years.
1ECUQLuioJbFZAQchcZq9pggd4EwcpuANe
1J9Fqc3TicNoy1Y7tgmhQznWrP5AVLXj9R
1MhgmGaHwLAvvKVyFvy6zy9pRQFXaxwE9M
1HyYMMCdCcHnfjwMW2jE4cv9qVkVDFUzVa
1JPtxSGoekZfLQeYAWkbhBhkr2VEDADHZB— ZachXBT (@zachxbt) December 19, 2022
Bitcoin recovery may take a long time
Many analysts fear that bitcoin will become new again lows can reach. The analysts of Crypto Insiders also warn about this. But even if bitcoin has already bottomed out, it could take years for markets to recover from this kind of decline, Ecoinometrics reports.
Even if the bottom is in, it takes 3-4 years to get out of these kinds of drawdowns. pic.twitter.com/Pl5ejeLyen
— ecoinometrics (@ecoinometrics) December 19, 2022
Economist Jurien Timmer therefore reports that he does not expect 2023 to be an exciting year. It may not get much worse than the 2022 low, but a new bull market cycle may be a long way off.
My sense is that 2023 will be a sideways choppy market, with one or more retests of the 2022 low, but not necessarily much worse than that. Either way, I don’t think we are close to a new cyclical bull market yet. pic.twitter.com/wQiakqw9W6
— Jurrien Timmer (@TimmerFidelity) December 19, 2022
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